Hwatsing Technology (SH:688120) Guotai Junan Securities·2024-08-19 13:41Investment Rating - The report maintains a rating of "Accumulate" for the company [4] Core Views - The company's Q2 performance met expectations, with a revenue of 1.497 billion yuan, representing a year-on-year increase of 21.23%, and a net profit of 433 million yuan, up 15.65% [5] - The company continues to enhance its product offerings and platform layout, with significant growth in CMP equipment, supporting materials, technical services, and cleaning equipment [5] - The gross profit margin for H1 2024 was 46.29%, showing stability despite a slight decrease of 0.03 percentage points [5] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 1.497 billion yuan, a 21.23% increase year-on-year, and a net profit of 433 million yuan, up 15.65% [5] - In Q2 2024, revenue reached 816 million yuan, reflecting a 32.03% increase, with net profit at 231 million yuan, a rise of 27.89% [5] - The company maintains its profit forecasts for 2024-2026, with net profits projected at 1.007 billion yuan, 1.290 billion yuan, and 1.677 billion yuan respectively [5] Product Development - The company is actively upgrading its CMP equipment, with the new Universal H300 model already achieving small batch shipments [5] - The Versatile-GP300 thinning equipment has secured multiple orders from leading front-end fabs, while the Versatile-GM300 is undergoing validation at major domestic packaging factories [5] - New cutting equipment, Versatile-DT300, has been sent to several clients for validation, and the cleaning equipment for compound semiconductors has passed its first acceptance test [5] Capacity Expansion and Localization - The company is set to complete its Beijing and Tianjin bases by the end of 2024, which will enhance its production capacity for CMP, thinning, and cleaning equipment [5] - A new investment of 1.698 billion yuan is planned for a new base in Shanghai Lingang to further improve capacity [5] - The company is advancing the localization of key components, having completed the domestic development of critical parts for thinning equipment, with some reaching mass production conditions [5]